The Parliamentary Secretary to the Treasurer, Senator Ian Campbell, today welcomed the imposition of conditions on a dealer's licence held by Mr David Tweed's National Exchange Corporation Pty Ltd.
"This measure by the Australian Securities and Investments Commission is in the interests of consumers, ensuring that if they receive unsolicited offers to buy shares then the market value of those shares must be disclosed with the offer," Senator Campbell said.
"The condition puts a halt to Mr Tweed's attempt to circumvent the regulatory change made to the Corporations Act in April requiring unlicensed dealers to disclose the current market price of the shares being sought.
"That regulatory change immediately stopped Mr Tweed operating as he had been, but by resurrecting an old licensed company he found a way to make more offers. Under the conditions imposed by ASIC, he no longer can make an offer without also stating the market value of the shares or an estimated value of any unlisted shares.
"Next month the Government will introduce in the Parliament the second of its measures to ensure consumers are afforded every protection when receiving unsolicited offers to buy shares. The proposed legislative amendment will cover all licence holders under the Financial Services Reform Act and make it mandatory for them to disclose the market value of the shares they are offering to buy.
"In the meantime, I urge anyone who receives any unsolicited offers that do not state the market price of the securities being sought to contact ASIC on 1300 300 630."
PERTH
26 May 2003
Contact: Wayne Grant 08 9421 1755 or 0407 845280